News

U.S. ethanol production and stocks rise as plant margins tighten

U.S. ethanol production and stocks both moved higher over the past week.

The U.S. Energy Information Administration says production averaged 1.091 million barrels per day, up 16,000 on the week, but down 19,000 on the year.

Producers continue to generally expect solid demand, but margins are starting to soften.

Iowa State University’s Center for Agricultural and Rural Development says the estimated operating margins for the average Iowa plant dipped, holding just above the breakeven mark.

Ethanol stocks of 22.307 million barrels were 88,000 higher than the previous week, but 256,000 lower than a year ago.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders and the volume of gasoline supplied to the market hit multi-week lows.

Ethanol exports averaged 145,000 barrels per day, a decrease of 12,000 from the week before, but an increase of 1,000 from this time last year.

The USDA’s updated corn for ethanol use projection is out December 9^th.